I don't even know the point of the iPad mini considering the iPod Touch pricing :|
I keep seeing people say this but it's just wrong. They're different products entirely.
Why buy The iPod Touch when you can buy an iPhone for the same price or cheaper?
Why buy an iPad for $499 when you can get a 64Gig iPhone for that price?
Or why buy the 64Gig iPhone when you can buy a friggin' iPad?
Why buy the $799 iPad when you can get a Mac Mini for that price or cheaper?
Why buy the $1200 iMac when you can buy a MacBook Air for $200 less?
What's the point of an iPad mini that's priced at $200-300 when there's an iPod Touch that same price? How about it's an iPad. It's way larger than an iPod. It's used to do different things than an iPod does. I'm not going to buy an iPod Touch for $300 to read a book, watch a movie, or make art. Likewise, I'm not going to spend $300 on an iPad Mini if I intend to use it for listening to music and light gaming.
Different products. Different markets. Price overlap already happens in their OSX products and in their iOS products.